Consumer spending makes Zalando worth an extra thought
The valuation of e-commerce stocks like Zalando has been under pressure. As shown in the chart below, Zalando’s valuation has been more than cut in half over the last year.
On the other
hand, in September, US consumer spending grew by 0.6 per cent and exceeded
analysts’ expectations, which were 0.4 per cent. October figures will be
released on the 1st of December, and the expectation is a growth of
0.7 per cent. In Europe, the year-over-year consumer spending growth was
negative in September but increased sequentially. Continued improved consumer
spending would speak in favour of a strong Q4, including Christmas shopping,
which in turn could give Zalando shares some speculative buying pressure.
Looking at the
daily price chart for the Zalando share, one can see that Zalando attempted to
break above the falling MA200 but failed. The next downside level is around
MA20, currently at EUR 27.5.
Zalando, daily one-year share price chart (EUR)
In the weekly chart below, momentum is negative but improving, as visualized by MACD.
Zalando, weekly five-year share price chart (EUR)
The full name for abbreviations used in the previous text:
EMA 9: 9-day exponential moving average
Fibonacci: There are several Fibonacci lines used in technical analysis.
Fibonacci numbers are a sequence of numbers in which each successive number is
the sum of the two previous numbers.
MA20: 20-day moving average
MA50: 50-day moving average
MA100: 100-day moving average
MA200: 200-day moving average
MACD: Moving average convergence divergence
Risks
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